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f a firm's operating and financial leverage are such that a 10 percent change in sales revenue produced a 20 percent change in EBIT, and
f a firm's operating and financial leverage are such that a 10 percent change in sales revenue produced a 20 percent change in EBIT, and a 10 percent change in EBIT led to a 20 percent change in earnings per share, what percentage change in earnings would you expect should revenues decline by 25 percent?
If sales revenues will decline by 25 percent, what percentage change in earnings would you expect?(
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